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Things are going quite swimmingly for the EV revolution in Europe these days. According to sales data released today by ACEA — the European Automobile Manufacturers Association — while total sales were down slightly in August, sales of battery electric and plug-in hybrid cars were up significantly from a year ago, especially for BYD. Here’s more from the ACEA press release:
“In the first eight months of 2025, 1,132,603 new battery-electric cars were registered, capturing 15.8 percent of the EU market share. Three of the four largest markets in the EU, accounting for 62 percent of battery electric car registrations, saw gains: Germany +39.2 percent, Belgium +14.4 percent, and the Netherlands +5.1 percent. France, however, saw a decline of 2 percent.
“August 2025 YTD’s figures also showed new EU hybrid electric car registrations rising to 2,485,069 units, driven by growth in the four biggest markets: France +30.5 percent, Spain +29.3 percent, Germany +10.1 percent, and Italy +9.4 percent. Hybrid electric models accounted for 34.7 percent of the total EU market.
“Registrations of plug-in hybrid electric cars continue to grow, reaching 631,783 units in the same period. This was driven by increases in volume for key markets such as Spain +99.9 percent, and Germany +61.2 percent, but also Italy 62.6 percent. As a result, plug-in-hybrid electric cars now represent 8.8 percent of EU car registrations, up from 6.9 percent..
“The YOY variation in August 2025 showed a rise of 30.2 percent for battery electric and 14.1 percent for hybrid electric cars, while plug-in-hybrid electric vehicles recorded their sixth consecutive month of continuous strong growth with a 54.5 percent increase.”
BYD Shines On The Continent
That’s all wonderful, but the real news is this: BYD outsold Tesla in Europe for the second straight month. According to CBT News, the ACEA data shows that BYD sold three times as many new cars in the European market last month as it did in August 2024, surpassing Tesla for the second month in a row.
“BYD’s sales surge highlights how Chinese automakers are expanding their presence in the European market. Meanwhile, Tesla’s EU sales declined 36.6%, reducing its market share to 1.2 percent, down from 2 percent a year earlier, as BYD gained 1.3 percent of the market,” CBT News said.
OK, stop for a minute. This is not strictly an apples to apples comparison. BYD and other Chinese companies are prioritizing plug-in hybrid models because they have to pay a lower import fee than for their battery electric cars. Tesla by definition does not manufacture PHEVs, so the figures are a bit skewed by that fact.
Nevertheless, market share is market share, and if that is how you are keeping score, BYD has given Tesla a black eye on its home turf, since Tesla has a factory in Germany while BYD does not — yet. BYD has been aggressively promoting its vehicles, including by showcasing the Dolphin Surf EV in Berlin. The company’s rapid expansion illustrates how Chinese automakers leverage competitive pricing, innovative technology, and strategic vehicle offerings to capture market share in Europe’s fast-evolving EV market.
Including Britain and the European Free Trade Association, new vehicle sales were up by 4.7 percent in August to 800,000. More buyers are choosing battery electric, hybrid, and plug-in hybrid vehicles, which combined accounted for 62.2 percent of new car sales. That is a significant increase from the same month last year when they accounted for 52.8 percent of sales.
Other Companies Also Registered Sales Gains
Other Chinese automakers also experienced strong growth in August compared to the same month last year. MG Motors increased sales by 59.4 percent in August, securing a 1.9 market share year-to-date and ranking as the EU’s tenth best selling brand so far this year.
Domestic manufacturers also saw improvements. Volkswagen sales were up 4.8 percent and Renault boosted registrations by 7.8 percent year over year, while Stellantis grew by 2.2 percent. That it the first sales increase for Stellantis since February 2024.
European automakers continue to face structural challenges — import tariffs in the US, increased competition from Chinese brands, and increasing costs associated with meeting stringent exhaust emission standards imposed by the European Commission. To keep their heads above water, several companies are relying on plug-in hybrids, which have a lower selling price and are somewhat more profitable than battery electric models.
The Plug-In Hybrid Question
But according to Transport & Environment, plug-in hybrids in some cases are more of an exhaust emissions scam than we realize. Zachary Shahan wrote a few days ago, “Carbon dioxide emissions from plug-in hybrid (PHEV) cars are almost five times higher, on average, than official tests suggest, according to new data published by the EU. The gap between PHEVs’ CO2 pollution in the real world and tests continues to grow despite carmakers’ claims that the technology has become cleaner. Earlier this month the European carmakers lobby demanded the EU cancel its efforts to better reflect hybrid emissions when calculating their progress towards climate targets.”
Does this sound like another Dieselgate scandal to you? Automakers have been working the refs for the past 60 years, trying to get regulators to dilute their emissions and safety standards, and it seems that is exactly what is happening again, but it really is not that cut and dried. Part of the problem is that in Europe, a large slice of the new car market is for company cars — cars that are owned by employers but given to employees for their private use.
Those schemes reimburse drivers for their fuel costs but not for the cost of electricity. Therefore, those who get a company car that is a PHEV never plug the damn thing in, which means the gasoline engine is forced to do far more work than would be necessary if the battery were kept charged.
This is a problem that has been common to PHEVs since the Chevy Volt was introduced in 2014. The federal government bought a bunch of them, thinking they would lower the cost of fuel for the government fleet, but no one ever plugged them in, and so the expected savings never materialized. The problem is not really with plug-iu hybrids; it is with dunderheaded policies that encourage drivers to not get the maximum advantage from those cars.
It seems like adjusting the policy would be an easy thing to do, but it is not, because it requires installing separate metering equipment in people’s homes to track how much electricity is used for charging their cars so they can be reimbursed for their expense. It sounds simple, but it really isn’t.
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